India Inc bats for removal of MAT on SEZ developers, units.

Corporate India has urged Finance Minister Arun Jaitley to exempt special economic zones (SEZ) developers and units from the levy of minimum alternate tax (MAT).

After being unable to get their way in recent years for removal of this levy, India Inc is once again making efforts to get this duty out of the income tax law in respect of SEZ developers and units.

A regime change at the Centre and new guard at the Finance Ministry has raised hopes among SEZ developers that the MAT levy would go in the upcoming budget.

'We have requested that MAT be totally removed for SEZ developers and units. For others, our suggestion is that the MAT rate should be scaled down to say 10 per cent,' said a senior industry representative who attended the pre-Budget meeting with Jaitley recently. This demand is seen as a big ask on Jaitley who may not deliver a populist Budget given the fiscal situation.

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